diff --git a/src/main/kotlin/com/flo/nem12/config/DatabaseConfig.kt b/src/main/kotlin/com/flo/nem12/config/DatabaseConfig.kt
index 037a118..a6398f5 100644
--- a/src/main/kotlin/com/flo/nem12/config/DatabaseConfig.kt
+++ b/src/main/kotlin/com/flo/nem12/config/DatabaseConfig.kt
@@ -30,16 +30,17 @@ object DatabaseConfig {
         CREATE TABLE IF NOT EXISTS failure_reading (
             id TEXT PRIMARY KEY,
             line_number INTEGER NOT NULL,
-            nmi TEXT, 
+            nmi TEXT,
             interval_index INTEGER,
             raw_value TEXT NOT NULL,
             failure_reason TEXT NOT NULL,
-            timestamp TIMESTAMP
+            timestamp TIMESTAMP,
+            is_processed BOOLEAN NOT NULL DEFAULT 0
         )
     """
 
     const val INSERT_FAILED_READING_SQL = """
-        INSERT INTO failure_reading (id, line_number, nmi, interval_index, raw_value, failure_reason, timestamp)
-        VALUES (?, ?, ?, ?, ?, ?, ?)
+        INSERT INTO failure_reading (id, line_number, nmi, interval_index, raw_value, failure_reason, timestamp, is_processed)
+        VALUES (?, ?, ?, ?, ?, ?, ?, ?)
     """
 }
diff --git a/src/main/kotlin/com/flo/nem12/repository/impl/FailureReadingsRepositoryImpl.kt b/src/main/kotlin/com/flo/nem12/repository/impl/FailureReadingsRepositoryImpl.kt
index 5ba4af6..2251030 100644
--- a/src/main/kotlin/com/flo/nem12/repository/impl/FailureReadingsRepositoryImpl.kt
+++ b/src/main/kotlin/com/flo/nem12/repository/impl/FailureReadingsRepositoryImpl.kt
@@ -52,6 +52,9 @@ class FailureReadingsRepositoryImpl(
         val utcTimestamp = entity.timestamp?.let { aestToUtc(it) }
         statement.setString(7, utcTimestamp?.format(timestampFormatter))
 
+        // Set is_processed to false (will be managed by separate failure processing system)
+        statement.setBoolean(8, false)
+
         // Update statistics
         statistics[entity.reason] = statistics.getOrDefault(entity.reason, 0) + 1
     }
diff --git a/src/test/kotlin/com/flo/nem12/repository/FailureReadingsRepositoryTest.kt b/src/test/kotlin/com/flo/nem12/repository/FailureReadingsRepositoryTest.kt
index 09d9c58..0e74953 100644
--- a/src/test/kotlin/com/flo/nem12/repository/FailureReadingsRepositoryTest.kt
+++ b/src/test/kotlin/com/flo/nem12/repository/FailureReadingsRepositoryTest.kt
@@ -11,6 +11,7 @@ import java.sql.DriverManager
 import java.time.LocalDateTime
 import kotlin.io.path.deleteIfExists
 import kotlin.test.assertEquals
+import kotlin.test.assertFalse
 import kotlin.test.assertTrue
 
 class FailureReadingsRepositoryTest {
@@ -264,4 +265,31 @@ class FailureReadingsRepositoryTest {
         assertEquals(5, resultSet.getInt("cnt"))
         connection.close()
     }
+
+    @Test
+    fun `should insert failure record with is_processed set to false`() {
+        // Given
+        val dbPath = testDbPath
+        val failure = FailureRecord(
+            lineNumber = 1,
+            nmi = "1234567890",
+            intervalIndex = 0,
+            rawValue = "invalid",
+            reason = FailureReason.EMPTY_VALUE,
+            timestamp = LocalDateTime.of(2024, 1, 1, 0, 0)
+        )
+        val connection = DriverManager.getConnection("jdbc:sqlite:$dbPath")
+
+        // When
+        FailureReadingsRepositoryImpl(connection, 10).use { repository ->
+            repository.save(failure)
+        }
+
+        // Then
+        val resultSet = connection.createStatement()
+            .executeQuery("SELECT is_processed FROM failure_reading")
+        assertTrue(resultSet.next())
+        assertFalse(resultSet.getBoolean("is_processed"))
+        connection.close()
+    }
 }